Jamesway Corporation makes two types of replacement fittings for heavy construction equipment screws and bolts. Data regarding the two products follow:

Additional information about the company follows:
a. Screws require $8 in direct materials per unit, and bolts require $6.
b. The direct labour wage rate is $20 per hour.
c. Screws are more complex to manufacture than bolts, and they require special equipment.
d. The ABC system has the following activity cost pools:

Required

1. Compute the activity rate for each activity cost pool.

2. Determine the unit cost of each product according to the ABC system, including direct materials and direct labour.

Transcribed Image Text:

Screws. Bolts.. Direct Labour- Hours per Unit 0.20 0.10 Annual Production 40,000 units 60,000 units